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Tax Publishers Amortization on berthing wharf owned by Port Trust *Facts:* Assessee had an agreement with Vizag port trust where they would construct and operate the vessel berthing/wharfage infrastructure on Build Operate and Transfer basis (BOT) for a after using and maintaining it for a period of 30 years. It was the case of the revenue that the assessee is never the owner of the berth/wharf and accordingly depreciation on the same was denied to the assessee by reopening the case of the assessee. On further appeal - Held in favour of the assessee that they were entitled to amortize the cost of the wharf/berth over a period of 30 years. CBDT circular no. 09/2014 dt. 23-04-2014 will need to be read retrospectively as it is a beneficial circular. *Applied:* Madras Auto Services Limited reported in (1998) 233 ITR 468 (SC) : 1998 TaxPub(DT) 1407 (SC) CBDT Circular No. 09/2014 dt. 23-04-2014 7. In the case where an assessee has claimed any deduction out of initial cost of development of infrastructure facility of roads/highways under BOT projects in earlier years, the total deduction so claimed for the Assessment Years prior to the Assessment Year under consideration may be deducted from the initial cost of infrastructure facility of roads/highways and the cost so reduced shall be amortized equally over the remaining period of toll concessionaire agreement. *Case:* Vizag Seaport (P) Ltd. v. Asstt. CIT 2023 TaxPub(DT) 4383 (Viz-Trib)

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Amortization on berthing wharf owned by Port Trust

Facts:

Assessee had an agreement with Vizag port trust where they would construct and operate the vessel berthing/wharfage infrastructure on Build Operate and Transfer basis (BOT) for a after using and maintaining it for a period of 30 years. It was the case of the revenue that the assessee is never the owner of the berth/wharf and accordingly depreciation on the same was denied to the assessee by reopening the case of the assessee. On further appeal -

Held in favour of the assessee that they were entitled to amortize the cost of the wharf/berth over a period of 30 years. CBDT circular no. 09/2014 dt. 23-04-2014 will need to be read retrospectively as it is a beneficial circular.

Applied:

Madras Auto Services Limited reported in (1998) 233 ITR 468 (SC) : 1998 TaxPub(DT) 1407 (SC)

CBDT Circular No. 09/2014 dt. 23-04-2014

7. In the case where an assessee has claimed any deduction out of initial cost of development of infrastructure facility of roads/highways under BOT projects in earlier years, the total deduction so claimed for the Assessment Years prior to the Assessment Year under consideration may be deducted from the initial cost of infrastructure facility of roads/highways and the cost so reduced shall be amortized equally over the remaining period of toll concessionaire agreement.

Case: Vizag Seaport (P) Ltd. v. Asstt. CIT 2023 TaxPub(DT) 4383 (Viz-Trib)